Shares of key metals and mining companies surged on Thursday, driven by a mix of government policy support, industry lobbying, and renewed investor optimism.
Gujarat Mineral Development Corporation rose 7.7 per cent to Rs 568.05, while Moil Ltd gained 5.04 per cent to Rs 344.00.
Other notable gainers included Sandur Manganese & Iron Ores (+4.79 per cent ), National Aluminium Company (+0.99 per cent ), and Hindustan Zinc (+1.05 per cent ), reflecting broad-based strength across the metals and mining sector.
ASMA Urges To Reduce Import Duty On Aluminium
The rally was contributed to by several factors. The Aluminium Secondary Manufacturers Association (ASMA) has recently urged the government to reduce the import duty on primary aluminium, which currently stands at 7.5 per cent.
The association highlighted that high input costs are hurting domestic downstream industries, including hundreds of MSMEs, which play a critical role in value addition and economic growth.
“We urge the government to reduce the import duty on primary aluminium to ensure domestic prices are rationalised,” ASMA said in a letter to the government.
Currently, domestic downstream manufacturers face a cost disadvantage because imported finished aluminium from countries under Free Trade Agreements (like ASEAN) enters India at zero duty, while they must procure raw materials at duty-inclusive prices.
The lobbying for lower duties has revived investor confidence in aluminium and related metal stocks, lifting market sentiment.
Cabinet Approves REPMs Scheme
In addition, policy support from the government has given fresh impetus to the metals sector. The Union Cabinet approved a Rs 7,280 crore scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPMs).
This first-of-its-kind initiative aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated REPM production in India, enhancing self-reliance and supporting strategic sectors like electric vehicles, aerospace, defence, and renewable energy.
REPMs are critical components in EV motors, wind turbines, electronics, and industrial machinery. With India currently reliant on imports to meet demand, the government’s scheme—including sales-linked incentives of Rs 6,450 crore and capital subsidy of Rs 750 crore- is expected to strengthen domestic supply chains and reduce import dependence.
